First rental caught fire!
I wanted to share my first "investor oriented" property experience. This was a cash purchase from a wholesaler that I know. The day after we bought it, there was a large storm that came through and the power lines caught on fire. Fire department broke down the door and tore the ceiling open. What was supposed to be "paint and rent" turned into a few sheets of drywall, new electrical panel, new front door, paint and rent. Overall the costs of the fire repair were less than my deductible, but it caused delays getting the city to allow us to rent it again. I put the details below.
4 Bed/ 2 Bath
1344 sqft
Purchase price: 57k
Estimated Repairs: 3.5k
Final Costs After Fire: 7k
Total Amount In: 64k
Rent: $1150
Cash Flow: $4820/year after refi
Purchase to rented: 2.5 months
Refinanced the property in December 2016, and closed on the next property 2/10/17.